Andrew Wilson has been the CEO of Senetas Corporation Limited (ASX:SEN) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Andrew Wilson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Senetas Corporation Limited is worth AU$84m, and total annual CEO compensation is AU$532k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at AU$400k. We examined a group of similar sized companies, with market capitalizations of below AU$280m. The median CEO compensation in that group is AU$365k.
As you can see, Andrew Wilson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Senetas Corporation Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Senetas has changed over time.
Is Senetas Corporation Limited Growing?
Over the last three years Senetas Corporation Limited has shrunk its earnings per share by an average of 16% per year. It achieved revenue growth of 7.8% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Senetas Corporation Limited Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Senetas Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at Senetas Corporation Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Senetas shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.